Personal Finance guide

Every quarter the economic indicators like the unemployment and inflation figures paint a bleak economic outlook; with no respite in sight more and more home owners have to contend with the bitter reality of foreclosure. Now while some homeowners explore the refinancing option many just accept the inevitable and the lending institution foreclose their homes. However, what many of these homeowners fail to realize is that there is another option in the form of home loan modification which can help them to save their homes.

A mortgage modification entails the renegotiation of the existing loan terms. So a home loan modification can encompass a gamut of solution like decreasing the interest rate, increasing the tenure of the loan and others; all ultimately aimed at reducing the monthly mortgage payments. This makes mortgage modification the ideal option for home owners who are facing a financial crunch.

If you are wondering what in it for the bank; the answer is quite simple, given the current sub prime crisis coupled with the fact that there are very few buyers in the market makes foreclosure an unfeasible option for the lending institution. Not only do they have to incur the cost of foreclosure proceedings but also they may not be able to recover their dues by selling the home in the absence of buyers.

Continue reading ‘Is Mortgage Modification A Legitamate Soultion To Your Mortgage Problems’ »

Mortgage refinancing with Bank of America is easier than ever for millions of homeowners thanks to President Obamas “Home Affordability” stimulus plan. The Obama administration has chosen a few selected mortgage lenders and banks to offer this program to homeowners and Bank of America is one of them. Now, mortgage refinancing options exist for all types of situations and are available with easy eligibility requirements through Bank of America and Obamas stimulus plan.

These benefits exist due to cash incentives that will be given to Bank of America and other lenders who have been selected to offer these refinancing options from Obamas stimulus to homeowners. Every time a selected lender or bank follows the stimulus plan guidelines and approves a homeowner for refinancing, they will receive cash benefits for doing so. This money decreases their financial liability and also, as the stimulus plan requires, allows more homeowners in bad financial or mortgage situations to get approved for a refinancing. Bank of America has been one of the leading refinancing providers offering this plan. They have approved many people for a mortgage refinancing using Obamas stimulus program for struggling homeowners. Over $75 billion dollars have been allocated for Obamas mortgage stimulus program, and most of it will be used for these cash incentives for mortgage lenders and banks, like Bank of America, who help homeowners.

While each homeowners situation is different, there are a variety of benefits a homeowner can get by using Bank of America and Obamas stimulus plan to refinance their home loan. Here are some of the biggest benefits:

-Mortgage interest rates lowered to as little as 2% to make the monthly mortgage payments affordable.

-The ability to switch loan types. Homeowners can easily switch between an adjustable rate mortgage into a stable fixed rate mortgage with Obamas stimulus program.

-Easy eligibility requirements even for homeowners with bad credit, financial hardships or an upside down mortgage.

Continue reading ‘Stimulus Mortgage Refinancing Options from Bank of America’ »

Ditech is taking part in President Obamas housing stimulus plan and now offering mortgage refinancing options to all types of homeowners. This means homeowners with financial problems or issues with their mortgage will find it easier than ever finding help refinancing a mortgage. Here are some things to know when using President Obamas plan and Ditech to get a mortgage refinancing.

Ditech, like a few other selected mortgage lenders and banks, gets cash incentives every time they offer a struggling homeowner a refinancing option that is in accordance with President Obamas stimulus. This means that they are taking on less financial risk and are able to help even more homeowners in even worse problems. This is helping the housing market, economy, and millions of homeowners.

Continue reading ‘New Ditech (GMAC) Mortgage Refinance Options from Obamas Stimulus’ »

Mortgage refinancing is a great move for many homeowners. With interest rates near record lows and new Government programs in effect, getting help refinancing a mortgage is easier than ever. Even struggling homeowners and those with financial issues can find help. Here is some advice for homeowners looking to refinance a mortgage with Obamas stimulus plan into the low mortgage interest rates available today.

Mortgage refinancing in the past was pretty much only beneficial for homeowners with good credit and a good repayment history. However, with the economy and housing market in bad shape, homeowners needed help. That is why the Obama administration has launched the “Home Affordability” stimulus program.

This stimulus program is designed to help struggling homeowners avoid losing their home, get better interest rates, and save money. Millions of homeowners are in a bad financial situation and are at risk of losing their home. This plans designed to help struggling homeowners and offer them refinancing options which were not available before.

Continue reading ‘Mortgage Refinance Stimulus Plan for Struggling Homeowners’ »

Mortgage refinancing is a great move for many homeowners. With interest rates near record lows and new Government programs in effect, getting help refinancing a mortgage is easier than ever. Even struggling homeowners and those with financial issues can find help. Here is some advice for homeowners looking to refinance a mortgage with Obamas stimulus plan into the low mortgage interest rates available today.

Mortgage refinancing in the past was pretty much only beneficial for homeowners with good credit and a good repayment history. However, with the economy and housing market in bad shape, homeowners needed help. That is why the Obama administration has launched the “Home Affordability” stimulus program.

This stimulus program is designed to help struggling homeowners avoid losing their home, get better interest rates, and save money. Millions of homeowners are in a bad financial situation and are at risk of losing their home. This plans designed to help struggling homeowners and offer them refinancing options which were not available before.

This program provides cash incentives to mortgage lenders and banks who offer refinancing options to homeowners in accordance with Obamas stimulus. This means that the lenders and banks are more willing to help struggling homeowners, and people who would not have gotten help before. Never before has such a plan been in place to help so many homeowners find relief and help them secure their financial future.

Continue reading ‘Mortgage Refinance Stimulus Plan for Struggling Homeowners’ »

Mortgage rates are currently near record lows. Combine that with new mortgage refinancing options available from Obamas stimulus plan and millions of people can benefit from refinancing a mortgage. Here is some advice for homeowners looking to refinance a home loan with Obamas stimulus program.

President Obamas stimulus plan is backed by over $75 billion in funding. This money makes getting help refinancing a mortgage in all types of financial problems easier than ever before. This money is going to be given to selected mortgage lenders and banks who follow Obamas guidelines and approve homeowners for a mortgage refinancing. The money enables mortgage lenders and banks to take more risk and approve more homeowners than ever before.

Never before has such a massive program been enabled that can help so many people. The goal of this stimulus program is to get homeowners an affordable monthly mortgage payment. The stimulus plan calls for a homeowner to not have to pay more than 31% of their gross monthly income to their mortgage payment. The thought behind this stimulus plan is that if a homeowner can actually make their payments, they will, and avoid foreclosure and defaulting on their mortgage.

Continue reading ‘New Mortgage Refinancing Options President Obamas Stimulus Plan’ »

Have you missed a mortgage payment? Are you more than 60 days late in making your monthly mortgage payment? If the answer to any on of these questions is a ‘yes’, a foreclosure is a real possibility and the only option to save your home is home loan modification. Not only is a mortgage modification simpler and cheaper than refinancing but also you can opt for it without worrying about your poor credit rating.

When you ask your bank for a home loan modification you are essentially telling them that you cannot meet your monthly mortgage payments. This may be due to a range of reasons that have caused a decrease in your income like divorce, death of an earning member, work related injury, chronic illness, unemployment etc. However, you are letting the bank know that you are confident that you will be able to make the payments if the amount is brought down to a more affordable figure.

You can also tell the bank about the option that is most suitable for you; there are two ways to reduce the monthly mortgage payment:

• To reduce the interest rate

• To increase the loan term.

There are two ways to initiate the home loan modification process you could either approach your bank on your own or you could avail the services of an attorney or a company that can negotiate the terms of the mortgage modification on your behalf.

Continue reading ‘How Loan Modification Can Stop A Foreclosure’ »

If you have missed a mortgage payment or if you are more than 60 days past due, you may be heading for troublesome waters and even a possible foreclosure. The delay in making the payment will reflect badly on your credit score rendering you ineligible for refinancing. In such a situation home loan modification may be the only way to save your house.

Today most lending institutions are not keen on foreclosure simply because they have to spend on the foreclosure proceedings and there are no buyers in the market. So essentially even after foreclosing the house they cannot recover their dues. On the other hand a mortgage modification is a ‘win-win’ solution for both the lender and the borrower. The lending institution can be reasonably sure that they will be able to recover most of their principle amount after granting the home loan modification and the borrower can be sure that the monthly mortgage payment will be more affordable.

When you request your bank to grant you a mortgage modification you are essentially stating that you are in financial trouble and so you will not be able to meet the monthly mortgage payments unless the amount is brought down to a more affordable level.

You will have to submit a home loan modification hardship letter along with other documents that will help the bank to confirm the veracity of your claims. If the bank feels that yours is a genuine case they may grant you a mortgage modification. There are two ways in which you could reduce the monthly payment either by bringing down the interest rate or by increasing the tenure of the loan. In certain cases the bank may also agree to write off a certain amount from the principle.

Continue reading ‘Are You Falling Behind On Your Mortgage – Loan Modification Can Help’ »

A good home loan modification letter should include three crucial elements. These three crucial points will help you to arrange your mortgage modification hardship letter in such a way that it will include all the necessary information and get you the desired results. So when you are drafting a home loan modification hardship letter include the following:

Financial adversity: The first thing that you need to mention in your mortgage modification hardship letter is the financial hardship that you are experiencing and the status of your current financial situation, this should include information about your earning and expenses. Also include the reason for the reduction in income. It is important to make your home loan modification hardship letter as pertinent as possible. You can include factors like work related injury leading to medical expenditure, job loss and interest rate reset among others.

The Time: It is also important to tell the bank about the time when the financial hardship began in your mortgage modification hardship letter. It would be good to verify facts with relevant documents. Your home loan modification hardship letter should include a brief, clear and chronological list of the difficulties and ensuing problems. Include information about late payments or defaults here.

Talk about what you want: The next step is to itemize the plans that you feel will help you to be more regular with your payments. In order to grant a mortgage modification, the bank needs to know that you are a responsible person who will definitely make the payment once the home loan modification has been granted. Tell the bank how reducing the interest rate will help you to meet your monthly payments. If possible also include your new budget plans that you intend to incorporate once the mortgage modification has been approved.

Continue reading ‘Loan Modification Hardship Letter Include’ »

A retiring Chicago city employee had her home loan with CitiMortgage modified to 2 percent on a 40 year amortization and granted a two month payment holiday to rebuild reserves. Her husband has social security and a small pension but She was facing a large drop in pay as her retirement date of June 30, 2009 was fast approaching. She would be receiving a pension at only 40% of her prior pay and she didn’t have enough social security quarters to draw her own benefit. They had never been late on their mortgage so making a case for not being able to afford it might look opportunistic. I was very reluctant to take on this client because 31% of their future combined income was so low that I just couldn’t imagine CitiMortgage coming through for them so I advised that they try to sell the property while I made their plea for Making Home Affordable (MHA) with CitiMortgage. They had listed their home with a local realtor and weren’t able to get any bites even at what they owed so this was a scary situation all the way around. I have only the highest regards for CitiMortgage loss mitigation department because they were willing to work on preventing a train wreck rather than watch idly by. This was a fairly aggressive loan mod application because our client maintained her perfect credit and headed off future problems by contacting us in advance of her drop in pay. See www.illinoismortgagemods.com to read more typical results. Continue reading ‘Verified loan modification results’ »